Estimate Alphabets market capitalization

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Question - Alphabet (GOOGL) has yet to pay a dividend, but in spring 2018 it announced it would repurchase $8.5 billion worth of shares over the year. (Actually, the exact amount was $8,589,869,056-known as a perfect number because it is equal to the sum of its divisors). If the amount spent on share repurchases were expected to grow by 6.8% per year, and Alphabet's equity cost of capital is 7.8%, estimate Alphabet's market capitalization. If Alphabet has 682 million shares outstanding, what stock price does this correspond to?

Reference no: EM133105475

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